Articles tagged “low-cost carriers”

Spirit Airlines is Prepared for United and American’s Basic Economy Fares

Spirit Airlines is Prepared for United and American’s Basic Economy Fares

Michael Sasso, Bloomberg

Under CEO Robert Fornaro, Spirit has gotten the message — legacy carriers do not want discount airlines growing in their hubs. Instead, Spirit has taken much of its new capacity elsewhere, adding flights at medium-sized airports, like Akron-Canton in Ohio.

3 days ago

Norwegian Air is Selling Trans-Atlantic Flights From Small U.S. Airports for $65 One Way

Norwegian Air is Selling Trans-Atlantic Flights From Small U.S. Airports for $65 One Way

Brian Sumers, Skift

This will be a good test. There's no doubt people love low fares, and Norwegian Air will be using a cost-effective aircraft. But is there enough demand from smaller U.S. airports to sustain flights to Europe?

3 days ago

$85 Billion Worth of Planes Not Enough to Meet Demand for SpiceJet in Asia

$85 Billion Worth of Planes Not Enough to Meet Demand for SpiceJet in Asia

Anurag Kotoky, Bloomberg

After some very difficult years due to industry expansion, it looks like SpiceJet is ready to go again. Will it be different this time?

4 days ago

Air France-KLM Gets Union Go-Ahead to Launch a New Airline

Air France-KLM Gets Union Go-Ahead to Launch a New Airline

Andrea Rothman, Bloomberg

Air France-KLM has scored a win. Too bad the plan is unpromising. Yes, its new airline may save on salaries, a good thing given that its staff costs are too high, as a proportion of revenues, relative to its peers. But the project will be costly and distracting.

5 days ago

CEO Interview: Air Asia X’s Plan to Make Cheap Trans-Pacific Flights a Reality

CEO Interview: Air Asia X’s Plan to Make Cheap Trans-Pacific Flights a Reality

Brian Sumers, Skift

Just as Norwegian Air has on trans-Atlantic routes, Air Asia X might disrupt established trans-Pacific players and push down fares. But making money on long-haul flights is tricky, and Air Asia X might decide it has better options closer to home.

5 days ago

Norwegian Air Has Picked New U.S. Bases But It’s Keeping Them a Secret

Norwegian Air Has Picked New U.S. Bases But It’s Keeping Them a Secret

Benjamin Katz, Bloomberg

Norwegian's reinvention of transatlantic travel is just beginning.

2 weeks ago

Ryanair Will Set Aside Low-Cost American Dreams to Focus on Europe

Ryanair Will Set Aside Low-Cost American Dreams to Focus on Europe

Justin Bachman, Bloomberg

You could argue that Norwegian has beaten Ryanair to the punch, but that would be discounting Ryanair's opportunities to take advantage of the stumbling of European carriers in its existing markets.

2 weeks ago

Eurowings Plans to Focus on Its Home Turf Before It Expands Its Long-Haul Operation

Eurowings Plans to Focus on Its Home Turf Before It Expands Its Long-Haul Operation

Brian Sumers, Skift

Lufthansa Group has been more insulated from low-cost competition than most of Europe's legacy airlines. That's quickly changing, and the company needs to get its plans in order. It must find a way to turn its Eurowings operation into a more nimble competitor with lower costs.

3 weeks ago

Spirit Airlines Feels the Heat From Other Carriers’ Low Fares

Spirit Airlines Feels the Heat From Other Carriers’ Low Fares

Andrew Sheivachman, Skift

Spirit Airlines had to reduce its guidance for 2017 following storm-related cancellations in early 2017. This represents a blip on the radar for Spirit, but questions remain about how Spirit will cope as legacy carriers introduce lower fares to compete.

3 weeks ago

Ryanair Cuts Fares as European Airline Competition Intensifies

Ryanair Cuts Fares as European Airline Competition Intensifies

Benjamin Katz, Bloomberg

The fact that an airline as powerful and well-funded as Ryanair is "cautious" about hitting its targets, shows just how difficult things are at the moment. The carrier will be hoping that its aggressive fare cutting reaps rewards further down the line.

3 weeks ago

African Aviation Has Many Complications Including a Lack of Volume

African Aviation Has Many Complications Including a Lack of Volume

Richard Holmes, Skift

Despite an enormous pool of potential passengers, Africa’s low-cost market has yet to take off. Are restrictive bilateral agreements to blame, or is something else going on here? For many airlines, the numbers just don’t add up.

3 weeks ago

SAS Will Create an Irish Base as It Seeks to Counter Norwegian Air

SAS Will Create an Irish Base as It Seeks to Counter Norwegian Air

Richard Weiss, Bloomberg

Perhaps SAS had no choice but to copy Norwegian Air and set up an entity outside Scandinavia. But this move is probably at least three years too late. SAS will be playing catch-up to a bunch of other airlines, many of which still will have far lower cost than it will.

4 weeks ago